What Does The MLC Actually Pay You? How US Mechanical Royalties Work
By Written by Peter McVeigh
Streaming, downloads, CDs and vinyl each work differently. Here are the current rates and where the money really goes.
A mechanical royalty pays the songwriter and publisher when a song is reproduced. In the US, The MLC handles streaming and download mechanicals. Physical sales have a set legal rate, 13.1 cents per song in 2026, but they don't go through The MLC's digital route.
I checked the details in this guide on 4 November 2026. Fees and rules change, so check each organization's own page before you rely on them.
What a mechanical royalty is
Copying a song on a CD, a download or a streaming service requires permission. US law, Section 115 of the Copyright Act, gives a compulsory license. Rates are set by the Copyright Royalty Board.
Physical and downloads have a fixed rate
2026 rate: Amount
Song up to five minutes: 13.1 cents per copy
Song over five minutes: 2.52 cents per minute or part of a minute
The rate applies per song, not per album, and it's reviewed every year. Here's a simple example: a label presses 1,000 CDs with 10 of your songs under five minutes. That's 13.1 cents x 10 x 1,000, or $1,310 in mechanicals. Contracts can change this, so check any deal you've signed.
Self-releasing your own songs
If you wrote all the songs, you're effectively paying yourself, though co-writers still need their share. If you're pressing a cover, you need a license. HFA's Songfile service is one route for independent artists licensing covers.
More worked examples
Situation: Sum: Result
One 6 minute 30 second song, per copy: 7 minutes or part minutes x 2.52 cents: 17.64 cents
You co-wrote a song 50/50, per copy: 13.1 cents x 50%: 6.55 cents to you
A cover on 500 CDs: 13.1 cents x 500: $65.50 due for that song
These use the 2026 statutory rates. Your contract, a negotiated license or a different year's rate could change them.
Streaming doesn't have a per-stream rate
Streaming mechanicals are based on the service's revenue, with a headline rate rising to 15.35% over the 2023 to 2027 term. The formula also has other tests, so you can't convert it to a neat number per stream. What you get depends on the service's revenue, how much your songs were played and your share of each song.
The MLC receives that money from services under the blanket license, matches it to registered songs and pays Members.
How this differs from MCPS
If you know the UK system, the big change is structural. MCPS is a membership society that sits alongside PRS and collects across several kinds of use. In the US, The MLC was created for digital audio mechanicals under the blanket license. It doesn't replace your PRO, and its FAQ describes its scope as digital audio mechanical royalties. So don't assume a CD pressing will be handled by it.
What you can check in your statements
Which songs have matched recordings.
Whether every share adds up, including co-writers.
Whether a publisher or administrator is already claiming a share.
Whether new releases have appeared after your distributor's delivery.
Why songwriters miss out
They joined a PRO and assumed that covered mechanicals. It doesn't. They're different payments.
A song isn't registered, or the shares don't add up.
A recording hasn't been matched to the song.
Names or titles differ between the distributor, the PRO and The MLC.
Bank or tax details weren't completed.
Remember the split
Your distributor pays for the recording. It doesn't normally pay your US song mechanicals. Self-releasing artists can have both, and need to claim each separately.
What to do next
Pick one song that's streaming. Is it registered with your PRO and The MLC? Is it matched to the recording? Are the splits correct? Fix what's missing, then repeat for your catalog.
Sources
Federal Register, 2026 rates: https://www.govinfo.gov/content/pkg/FR-2025-12-01/html/2025-21695.htm
Hypebot, 2026 rates: https://www.hypebot.com/new-2026-us-mechanical-royalty-rates-set/
Music Business Worldwide, Phonorecords IV: https://www.musicbusinessworldwide.com/phonorecords-iv-music-publishers-react-to-us-streaming-royalty-rate-rise
The MLC, FAQ: https://www.themlc.com/faqs/categories/play-your-part
HFA, About: https://www.harryfox.com/history
Disclaimer
General information, not legal or financial advice. Worked example excludes any contract terms and deductions.